The airport industry briefing
The latest news, views and numbers you need to know this month
News in Numbers
22%
Amsterdam Airport Schiphol handled 25.5 million travellers in 2021, marking a 22% increase compared to last year.
$40m
Dayton International Airport in the US is reportedly aiming to invest over $40m in the following years to improve its infrastructure.
$4bn
Airport Authority Hong Kong is reportedly planning to raise up to $4bn in a multi-tranche dollar bond offering.
€19.2m
Brussels South Charleroi Airport in Belgium is set to receive a grant of up to €19.2m from the European Commission for its recapitalisation.
$17.4bn
The Australian Foreign Investment Review Board has given the go-ahead to the $17.4bn takeover offer of Sydney Airport by the Sydney Aviation Alliance consortium.
€2.55bn
The European Commission has given the nod to €2.55bn of restructuring support for Transportes Aéreos Portugueses SGPS and TAP Air Portugal to return to viability.
15
Hungary’s low-cost carrier Wizz Air has picked up 15 daily slot pairs from Norwegian Air Shuttle at London Gatwick Airport in the UK.
Projects
PVG initiates fourth phase of expansion project
Shanghai Pudong International Airport (PVG) in China has unveiled the fourth phase of its expansion project, which aims to bolster connectivity in the Yangtze River Delta area and fulfil the development requirements of Shanghai-based carriers.
The airport organised a ground-breaking ceremony for the implementation of 82 major projects in the Pudong New Area in Shanghai, marking the latest expansion phase of PVG.
In total, these projects have been estimated to cost $49.8bn.
JFK to start work on new $9.5bn terminal in 2022
New York’s John F Kennedy International Airport (JFK) Airport is set to break ground on its new $9.5bn international terminal project next year after facing a delay due to the pandemic.
In this context, the Port Authority of New York and New Jersey signed a revised agreement with The New Terminal One (NTO), a consortium of financial sponsors.
NTO is a private consortium, including Carlyle, JLC Infrastructure and Ullico.
The entire construction cost of the new 2.4 million-square-foot terminal will be privately funded by the NTO consortium.
SAN begins work on $3.4bn terminal project
San Diego County Regional Airport Authority, which owns and operates San Diego International Airport (SAN), has broken ground on the $3.4bn New Terminal 1 (New T1) project at the airport.
This project will replace the old Terminal 1, upgrade the airfield, enhance road connectivity to the airport.
Additionally, it includes the construction of a new facility for the Airport Authority administration.
Terminals and roadways, airside improvements and a new administration building are the three components of New T1.
New PNQ terminal to be completed by August 2022
Airports Authority of India has announced that the construction work for the new integrated terminal building at Pune International Airport is scheduled to be finished by August 2022.
The total project is valued at around $65.07m (Rs4.75bn), with 60% of the work already concluded.
Quotes
Commenting on the Prime Minister’s announcement on travel restrictions, AOA Chief Executive Karen Dee said:
“Removing all the temporary travel restrictions is a welcome recognition that they no longer serve a purpose, now omicron is well-established in the UK.
“Despite the removal of the temporary measures, airports continue to face a difficult period.
"There continue to be countries who have imposed restrictions on UK arrivals and consumer confidence has been knocked during the crucial Christmas booking period.
"The UK and devolved governments should set out how they will support aviation towards a sustainable recovery to ensure the UK has the connectivity and the airports necessary for our economic recovery.”
Willie Walsh, IATA’s director general, comments on the Announcement of New EU Slot Use Rules for Summer 2022:
"We hope that as soon as possible, governments restore travel rules that allow for the industry to return to growth again.
"Until demand growth stabilises, it is essential slot rules are restored gradually and continue to maintain provisions for reasonable exceptions when conditions change, such as a rapid clamp down on travel with the emergence of a new variant like Omicron. Only with sustainable and predictable global travel rules can connectivity recover and remove the need for slot alleviation.
"The airport slots system has been the backbone of building global air connectivity which before Covid-19 was serving 4.5 billion passengers across a route network that over 20 years had doubled while fares had halved in price. This success can be rebuilt if regulators treat the system with care."
